Press release BoxID: 192490 (Siemens AG Industry Sector / Industry Automation Division)
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Siemens Mobility to continue manufacturing in Germany / Locations are to be retained

Siemens to give up its production facility in Prague / Selling option

(PresseBox) (Fürth, ) Within the context of its "Mobility in Motion" program, the Siemens Mobility Division intends to reorganize its manufacturing activities in Europe. The aim is to make its business operations competitive over the long term. As announced, approximately 1,800 jobs are to be cut in engineering and manufacturing worldwide. Siemens means to give up its production facility in Prague, which employs around 950 people, by the end of fiscal 2009 at the latest. Selling the factory is viewed as one of the options available. The German and Austrian locations of the Division are to be retained. In Krefeld-Uerdingen (Germany), Siemens proposes to cut 220 jobs after all the repair services for the Combino come to an end there. The planned reduction of a further 630 jobs will primarily affect the Mobility locations in Braunschweig, Nuremberg, Erlangen, Berlin, Offenbach, Constance, Düsseldorf, Vienna and Graz. No jobs are to be lost in Munich.

"In the necessary reorganization process, excess capacity in our factories will be eliminated. This will ensure the long-term competitiveness of the Mobility Division", stated Hans-Jörg Grundmann, CEO of the Mobility Division. The main reason for the excess capacity is the increasing proportion of customers in growth markets such as China, for example, who more and more frequently demand the involvement of local partners. The Division is therefore planning to optimize its value adding and, for example, to hand over portions of production entirely to subcontractors, as is done in the automotive industry. Siemens also plans to give up its Mobility production facility in Prague. According to Grundmann: "In Prague, we have a number of very well trained specialists and can also imagine selling the factory to a reputable company."

In future, the production of rail vehicles for Mobility is to be concentrated in three centers of competence: aluminum vehicles are to be made in Krefeld-Uerdingen, steel vehicles in Vienna and locomotives in Munich. Production locations close to the customer such as the tram manufacturing plant in Sacramento (USA) are to be retained. As already announced in early July, a total of 2,500 jobs are to be cut worldwide in the Siemens Mobility Division in the course of the comprehensive restructuring program. Around 700 of them will be in sales and administration and approximately 1,800 in engineering and manufacturing, primarily in Europe, where 850 jobs are to go (see table).

Table: Planned reduction of 850 jobs in engineering and manufacturing (figures rounded off)Country Location

This document contains forward-looking statements and information - that is, statements related to future, not past, events. These statements may be identified by words as "expects," "looks forward to," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens' control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens worldwide to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from: changes in general economic and business conditions (including margin developments in major business areas); the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; changes in currency exchange rates and interest rates; introduction of competing products or technologies by other companies; lack of acceptance of new products or services by customers targeted by Siemens worldwide; changes in business strategy; the outcome of pending investigations and legal proceedings; our analysis of the potential impact of such matters on our financial statements; as well as various other factors. More detailed information about our risk factors is contained in Siemens' filings with the SEC, which are available on the Siemens website,, and on the SEC's website, Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.

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Siemens Industry Automation (Nürnberg), eine Division des Siemens-Sektors Industry, ist weltweit führend in den Bereichen Automatisierungssysteme, Niedrigspannungs-Schaltanlagen und Softwarelösungen für die Industrie. Das Portfolio reicht von Standardprodukten für die Fertigungs- und Prozessindustrie bis zu branchenspezifischen Lösungen und Systemen für die Automatisierung ganzer Produktionsanlagen in der Automobilbranche und der chemischen Industrie. Als einer der führenden Software Anbieter optimiert Industry Automation die gesamte Wertschöpfungskette der Fertigungsunternehmen - von Produktdesign und Entwicklung bis zu Produktion, Vertrieb und Service.